Durable Medical Equipment market in the US will reach USD 70.78 billion by 2025

The US Durable Medical Equipment market was valued at USD 49.9 billion in the year 2019 and is estimated to reach USD 52.89 million by the year 2020.

It is expected to grow at the CAGR of 6% within the time horizon of 2020-2025 because of Increase in prevalence of the chronic disease, rising aging population, increasing spending in durable medical equipment, and growing home healthcare services market.

However, failure to meet the desired performance, risk of accidents, and high equipment and maintenance cost might restrain the growth and development of its market.

Its market value will reach USD 70.78 billion by the end of the year 2025.

Definition / Scope
Market Overview
Market Risks
Top Market Opportunities
Market Trends
Industry Challenges
Technology Trends
Pricing Trends
Regulatory Trends
Market Size and Forecast
Market Outlook
Technology Roadmap
Distribution Chain Analysis
Competitive Factors
Key Market Players
Strategic Conclusion
References
Appendix

Definition / Scope

Durable medical equipment is the medical devices that are used in the patient’s home to improve the quality of the life of the patients with some medical conditions.

The major durable medical equipment is iron lungs, wheelchairs, catheters, oxygen tents, blood sugar monitors, nebulizers, etc. This equipment assists to reduce the dependency of patients on family and professional caregivers due to the presence of high-tech monitoring and feedback technologies embedded in the durable medical equipment.

The US durable medical equipment market is concerned with the manufacture, distribution, and sales of durable medical devices. Based on the application and type of product, the US durable medical equipment market is comprised of the following types:

Market Overview

The total market size of the US durable medical equipment market is valued at USD 49.9 billion in the year 2019 and is expected to reach USD 52.89 billion in the year 2020.

Its market value is expected to grow at a CAGR of 6% within the forecasted time horizon of 2020-2025. Its market value is expected to reach USD 70.78 billion by the end of the year 2025.

Based on the type of product, the monitoring & therapeutic devices segment is leading the market with a market share of almost 85.29% of the total US durable medical equipment market.

The market size of this segment is valued at USD 42.56 billion in the year 2019. Based on the application, the hospital segment is leading the market with a market share of almost 34.28% of the total US durable medical equipment market. The market size of this segment is valued at USD 17.10 billion in the year 2019.

Increase in prevalence of the chronic disease, rising aging population, increasing spending in durable medical equipment, and growing home healthcare services market are the factors responsible for the growth and development of the total US durable medical equipment market.

However, failure to meet the desired performance, risk of accidents, and high equipment and maintenance costs might restrain the growth and development of this market.

The key market players engaged in the operation of this US durable medical equipment market are Invacare Corporation, Sunrise Medical, ArjoHuntleigh, Hill-Rom, Stryker, Medline Industries, Medical Device Depot, GF Health Products, etc.

Market Risks

Failure to meet the desired performance and risk of accidents

Some of the durable medical equipment are unable to meet the specific requirement of the patients as per their physical body structure. Mostly, personal mobility devices are failing to meet the desired performance for the patients.

For instance, the patient carrying equipment such as a wheelchair tends to break due to wear and tear while carrying the obese patients. A research study conducted from the analysis of the National Electronic Injury Surveillance System has found that trips and falls from the wheelchair account for almost 65-80% of the injuries among the wheelchair users of all age groups.

Because of this, the patients are at risk for severe accidents and injuries. Another research study published in the BMJ Open journal has revealed that the wheelchairs user are three times more likely to die in road traffic collisions in comparison to the rest of the wheelchair non-users.

It has created hesitation among the health care workers towards the use of durable medical equipment. It might create a risk for the growth and development of the US Durable Medical Equipment Market.

Top Market Opportunities

Increase in prevalence of the chronic disease

The incidence of chronic diseases such as cancer, diabetes, rheumatoid arthritis, multiple sclerosis, epilepsy, Alzheimer’s disease, Parkinson’s disease, etc is in increasing trend in the context of the United States.

For instance, almost 1.7 million people are diagnosed with cancer and the new cases of cancer are expected to rise at a rate of 70% over the next few years.

According to the Center for Disease Control and Prevention, almost 25% of the population i.e. 54.4 million adults in the United States suffer from arthritis and it has been estimated that almost 78 million adults above 18 years will be diagnosed with arthritis by the end of the year 2040.

The centers for Disease Control have also stated that almost 75% of the average healthcare spending is accounted for chronic diseases. According to the American Neurological Association, almost 5.3 million people are suffered from Alzheimer’s disease.

A survey conducted by the National Center for Biotechnology Information has stated that almost 133 million people in the United States suffer from at least one chronic disease. The rising prevalence and incidence of chronic disease are creating a significant opportunity for the growth and development of the US durable medical equipment market.

Rising aging population

According to World Population Prospects 2019, almost 1 in every 11 people will be more than 65 years of age by the year 2050, increased from almost 1in every 6 people globally.

The proportion of the aging population is also increasing. According to the Population Reference Bureau, there are more than 52 million people age more than 65 years in the context of the United States. It has been estimated that the number of the geriatric population will reach 95 million by the end of the year 2050.

The geriatric population is at high risk for chronic health conditions such as cancer, diabetes, etc. The rising aging population and rising susceptibility of the elderly population towards chronic illness are creating a significant opportunity for the growth and development of the US durable medical equipment market.

Market Trends

The factors driving the growth and development of the US durable medical equipment market are increasing spending in durable medical equipment, rapid technological advancements, increasing penetration & consumer preferences towards home healthcare services, rising approval for durable medical equipment, growing usage of monitoring devices in the healthcare industry, and surging expenditure in healthcare infrastructure.

The major driving factors of the US durable medical devices market are discussed as follows:

Increasing spending on durable medical equipment

The spending of the governmental and non-governmental organizations on durable medical equipment is in increasing trend in global and the US context.

The spending of the United States in durable medical equipment is expected to grow at a CAGR of 5.3% within the forecasted time horizon of 2020-2025. The US expenditure of durable medical equipment is expected to reach USD 60.2 billion by the year 2020, increased from USD 46.5 billion in the year 2015.

The increasing spending of the United States in the durable medical equipment market is driving the growth and development of the US durable medical equipment

Increasing home healthcare services market

The market size of the global home healthcare market is valued at USD 281.8 billion in the year 2019. The market value of the global home healthcare services market is expected to grow at a CAGR of 7.9% within the forecasted time horizon of 2020 to 2025.

In the context of the United States, the market for home healthcare services also is in increasing trend. Its market value is expected to grow at a CAGR of 7% annually. The market size of the US home healthcare services is expected to reach USD 173 billion by the end of the year 2026, increased from USD 103 billion in the year 2018.

The increasing home healthcare services market is driving the growth and development of the US durable medical equipment.

High equipment and maintenance costs

The cost of the US durable medical equipment such as oxygen concentrator, positive airway pressure machines is quite high and is often high out-of-pocket expenditure for the seniors.

For instance, the average cost of the hospital bed is about USD 1224 per unit. The average cost of the oxygen concentrator is about USD 412 to USD 1630 per unit. The average cost of Positive Airway pressure machines is about USD 300 to USD 748 per unit.

The high equipment and maintenance cost of the US durable medical equipment might restrain the growth and development of the US durable medical equipment market.

Industry Challenges

Competitive bidding program

The Medica has initiated the competitive bidding program for durable medical equipment since its first round of bidding in January 2011 and second round in July 2013.

Because of the first round of bidding, the price of the durable medical equipment is lowered by almost 32% in nine metropolitan areas while the price of these equipment has been lowered to 45% in 91 metropolitan areas.

Here, it is quite challenging for the key market players with high-cost manufacturing to establish their market value.

Technology Trends

The adoption of new and advanced technologies is creating a favorable environment for the growth and development of the US durable medical equipment market. Some of the key technological trends in this market are discussed as follows:

Needle-free diabetic care: The needle-free diabetic care measures the blood sugar level painlessly. Some of the needle-free blood glucose measurement devices are freestyle libre, GlucoTrack, Eversense, GlucoWise, NovioSense, GlucoSense, etc.

Wireless pulse oximeter: This device monitors the oxygen saturation of the patients’ blood, changes in the blood volume in the skin, and heart rate through the wireless system.

Brain-machine interfaces: This interface technologies focuses on the use of the external devices to relay brain signals to limbs, wheelchairs, and other technological devices.

Pricing Trends

The price of durable equipment depends upon the type of product, application, brand name, and type of technology. For instance, the cost of the blood glucose monitors is valued at USD 25 -USD 120 per unit while the cost of the blood pressure monitor is valued at USD 75 to USD 150 per unit.

The cost of the oximeter is about USD 20 to USD 60 per unit while the cost of the oxygen concentrators is about USD 600 to USD 2000 per unit. The price of the walkers is about USD 50 to USD 700 per unit while the price of the ostomy supplies is about USD 80 to USD 100 per month.

Regulatory Trends

In the context of the United States, FDA’s Center for Devices and Radiological Health is responsible for the regulation of the medical devices market including the durable medical equipment market.

The manufacturers and distributors of the medical devices must register their establishments with the Food & Drug Administration and must submit electronically.

The foreign manufacturers engaged in this market must designate a US agent. Some of the regulations directly or indirectly related to the US durable medical equipment market are discussed as follows:

Affordable Care Act 2013: According to this act, a 2.3% tax is imposed on the domestic sales of a medical device including MRI machines, hospital beds, and surgical equipment in the United States.

Prior authorization rule for certain durable medical equipment: This rule is issued in February 2016 to protect the access to necessary care for Medicare and Medicaid beneficiaries. According to it, the relevant documentation of a master list of 135 items must be submitted for prior authorization.

Market Size and Forecast

The total market size of the US durable medical equipment market is valued at USD 49.9 billion in the year 2019 and is expected to reach USD 52.89 billion in the year 2020.

Its market value is expected to grow at a CAGR of 6 % within the forecasted time horizon of 2020-2025. Its market value is expected to reach USD 70.78 billion by the end of the year 2025.

Based on the type of product

The monitoring & therapeutic devices segment is leading the market with a market share of almost 85.29% of the total US durable medical equipment market. The market size of this segment is valued at USD 42.56 billion in the year 2019.
The personal mobility devices segment accounts for a market share of almost 8.82% of the US durable medical equipment market. The market size of this segment is valued at USD 4.4 billion in the year 2019.
The bathroom safety & medical furniture segment accounts for a market share of almost 5.88% of the US durable medical equipment market. The market size of this segment is valued at USD 5.88 billion in the year 2019.

Based on the application

The hospital segment is leading the market with a market share of almost 34.28% of the total US durable medical equipment market. The market size of this segment is valued at USD 17.10 billion in the year 2019.
The home healthcare segment accounts for a market share of almost 33.33% of the US durable medical equipment market. The market size of this segment is valued at USD 16.63 billion in the year 2019.
The ambulatory surgical centers account for a market share of almost 18.09% of the US durable medical equipment market. The market size of this segment is valued at USD 9.02 billion in the year 2019.

Market Outlook

The US Durable Medical Equipment Market is expected to grow at the CAGR of 6% within the forecasted time horizon of 2020-2025 because of the increase in the prevalence of chronic disease, rising aging population, increasing spending in durable medical equipment, and growing home healthcare services market.

Its market value will reach USD 70.78 billion by the end of the year 2025.

Technology Roadmap

New advanced technological trends and innovations are creating a favorable environment for the growth and development of the durable medical equipment market.

For instance, the major technological changes in the US durable medical equipment are the adoption of sensors, wearable medical devices, wireless communication with IoT & cloud computing, etc.

Some of the advanced durable medical equipment are needle-free diabetic care, wireless pulse oximeter, medication administration equipment, brain-machine interferences, etc. The technological changes occurring in the US durable medical equipment market are driving the growth and development of this market.

Distribution Chain Analysis

The key stakeholders involved in the operation of this US durable Medical Equipment market are durable equipment manufacturers, distributors, retail & online sales, and end-users.

At first, the manufacturing company develops and assembles the components of the durable medical equipment and distributes it to the retailers. The major end-users of this market are hospitals, home healthcare, ambulatory surgical centers, and others.

Technology Roadmap

New advanced technological trends and innovations are creating a favorable environment for the growth and development of the durable medical equipment market.

For instance, the major technological changes in the US durable medical equipment are the adoption of sensors, wearable medical devices, wireless communication with IoT & cloud computing, etc. Some of the advanced durable medical equipment are needle-free diabetic care, wireless pulse oximeter, medication administration equipment, brain-machine interferences, etc.

The technological changes occurring in the US durable medical equipment market are driving the growth and development of this market.

Distribution Chain Analysis

The key stakeholders involved in the operation of this US durable Medical Equipment market are durable equipment manufacturers, distributors, retail & online sales, and end-users.

Competitive Factors

The US Durable Medical Equipment Market is highly competitive and several numbers of the market players are present in the market with competitive strategies.

The key market players engaged in this market are competing for the product portfolio expansion, development of the advanced devices with durability & reliability, high investment in research and development activities, mergers & acquisitions, and collaborations.

For instance, Hill-Rom has acquired Mortara Instrument to increase its product portfolio. ArjoHuntleigh has launched a new online sling selector tool to find the most suitable solutions for the patient’s specific requirements.

In the year 2019, Breg Inc. has launched Breg Vision 7.0 to automates in-house durable medical equipment programs with a paperless workflow management system.

Key Market Players

Invacare Corporation: It is the Us-based company engaged in the manufacture and distribution of non-acute medical equipment. The major medical equipment is wheelchairs, mobility scooters, walkers, pressure care & positioning, and other respiratory products.

Sunrise Medical: This company is engaged in the design, manufacture, and marketing of medical products and assistive technology devices for the recovery and respiratory needs of patients in-home care settings and hospitals.

ArjoHuntleigh: It is the Sweden-based company engaged in the manufacture of medical equipment and integrated solutions. It is specialized in the sector of patient handling & hygiene, pressure ulcer prevention, wound healing, disinfection, and diagnostics.

Hill-Rom: it is the US-based company engaged in the provision of medical devices. Its major products are hospital smart beds & surfaces, patient monitors, are communications, lifts, physical exam, vision screening, smart care services, etc.

Stryker: It is the US-based company engaged in the manufacture of medical technologies for joint replacement, trauma surgeries, surgical equipment, endoscopic & communication systems, neurosurgical, and spinal devices.

GF Health Products: It is the US-based leading manufacturers of medical products such as healthcare seating, patient lifts & slings, therapeutic support surfaces, wheelchairs, respiratory products, etc.

Strategic Conclusion

The US Durable Medical Equipment Market is growing at the rate of 6% within the forecasted time horizon of 2020-2025 because of the increase in the prevalence of chronic disease, rising aging population, increasing spending in durable medical equipment, and growing home healthcare services market.

However, failure to meet the desired performance, risk of accidents, and high equipment and maintenance costs might restrain the growth and development of this market.

References

Appendix

IoT= Internet of Things
USD= United States Dollar
CAGR= Compound Annual Growth Rate